Morgan Contractors borrowed $1.75 million at an APR of 10.2 percent. The loan called for a compensating

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Morgan Contractors borrowed $1.75 million at an APR of 10.2 percent. The loan called for a compensating balance of 12 percent. What is the effective interest rate on the loan?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 12, 2012 01:11 AM

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Morgan Contractors borrowed $1.75 million at an APR of 10.2 percent. The loan called for a compensating

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Amount to be borrowed 1750000 Stated annual interest rate 102 Compensating balance 12 Amount dep...View the full answer

Fundamentals of corporate finance

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